Does anyone know anything about burial insurance?

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My Mom is almost 82, she has some money in her savings for her Assisted Living, and I am quite sure we will need it for that. Also, my Dad was a Vet and when he passed away, he still paid 7,000 (money in savings) for his death expenses. I was shocked when it still cost 7000.oo, We live in Taylor Tx and he was buried in Kileen Tx, state Sematary, he had full honors and his burial plot and headstone the VA paid for because of his long service in the Air Force. My Mom has a place beside him and the plot and the headstone will be taken care of by the V.A. We paid 3,000 for his coffin and 4 grand for the rest. I was shocked that it still cost as much as it did. I may of got off track here, but wanted to give you a back ground on it. So, does any one know any thing about burial insurance and are they a rip off? Thanks

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Ferris, You and your husband are absolutely amazing.
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I have been assisting families with funeral preplanning for over 13 years and I have never had anyone come back to me and say that it was a bad idea. There are a few ways too look at this for maximum future benefit. First of all you should be preplanning with a funeral home that you have confidence with, the specific information will be documented and you will understand how you might need be able to control those expenses, by making choices that will stay within your budget. You are making educated choices vs. impulsive emotional decisions. With prepayment of the services and merchandise (casket), you may be able get a "guarantee" from the funeral provider so that it will not cost more at the time of need. They should have a funeral agreement that states that specifically. The insurance funded burial agreements are portable so they can be used at any funeral provider. But truly the financial benefit is if you receive the "guarantee". There are some funeral providers that are part of a large network and have a few more providers to select from. Paying for costs at today's prices versus costs at the time of need can also shelter those funds in event of Medicaid spend down. The insurance assignment must be made irrevocable to provide this. Please keep in mind there will be funeral related expenses such as the opening/closing costs at the VA. Cemetery (approx. $550), newspaper obituary, death certificates, clergy stipend, musician, flowers, etc. and these may or may not be part of the guarantee. Good luck.
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Since you know she is going to be buried with her husband in a National Cemetery, pre-payment of funeral expenses might be the way to go. Since you already know about how much to spend, start saving money now. You didn't mention what condition your mom is in and at 82 yrs. she could live a lot longer than you know. My husband is going on 87 yrs. and just walked 3 1/2 miles!
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Yes, there are simpler and cheaper ways to prepare for this. It is called final expense insurance Bruce
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You should always shop for these services without revealing what amount you are willing to pay... "or have", Also what would you do if management changes, home goes out of business, is sold, or is sued or their assets are attached?
In Wisconsin just this past year 2012, the Funeral fund there is $20 million short on future liability (risky investments)

A true Funeral Trust, is not tied to any specific Funeral home, is not purchased there, but a Funeral home can be designated, they can agree on a fixed price but the Funeral home is not the beneficiary, (and should not be) so the trust is portable to account for life changes if they occur. A Funeral Trust is Medicaid Exempt, and is fully insured. Any excess not spent is received by the estate.
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Yes, I do. It's called Pre-paid Funeral, instead of burial insurance. And it's well worth it's money! My brother passed away suddenly, and the funeral was astronomical also. But if he had enrolled with a "Pre-paid Funeral", it would have been a fraction of the cost. So immediately after my brother passed away, my mom and dad signed up for one. This is where you have a contract with the funeral home, pick out what you want as far as casket, music, etc. and pay a set price for it in advance. When the person passes, the funeral home is already paid up for the services and works with the family on the rest. It's also very comforting for the family because they don't have to suddenly come up with this money, a lot of the decision making is already done, etc. My mother-in-law, whose husband was a vet, just recently passed away and she had one also. It was very beneficial and I strongly suggest it. Just be sure and use a reputable company. Good luck!!
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